The order flow continues to rise, and Top Glove can turn profitable in the 2025 fiscal year.
(Kuala Lumpur, 10th) Top Glove $TOPGLOV (7113.MY)$ The loss for the 2024 fiscal year has significantly narrowed. With the order flow maintaining an upward trend, the management is bullish that the 2025 fiscal year can achieve profitability.
Lim Jenn Yuan, the director of Top Glove, said today at the online performance briefing that with the current sales growth momentum, the company believes achieving profitability in the 2025 fiscal year is feasible.
In the latest quarter's performance announcement, sales volume increased by 91% year-on-year, with North America's sales volume skyrocketing by 117% on a month-on-month basis, accounting for 17% of total sales.
However, he pointed out that this was mainly due to reduced inventory leading to restocking, rather than the impact of US tariffs.
Looking back at previous reports, the US significantly raised tariffs on Chinese goods, with glove tariffs set to increase to 50% starting in 2025, further rising to 100% in 2026; compared to the previously proposed 25% tariff hike in 2026.
"The sales brought about by the tariff effect will start to show in the first quarter of the 2025 fiscal year, which is in November this year, with more effects to be seen in the next quarter, as at that time China's (medical gloves) sales to the US will come to a complete halt."
Top Glove Executive Chairman Tan Sri Lim Wee Chai added that this will significantly impact the sales of Chinese glove businesses. They may try to ship out as many products as possible by the end of the year, while on the contrary, (US tariffs) will benefit glove businesses from other countries.
When asked if they are worried about the competition...